Zynga, the creator of online games such as ‘FarmVille’ and ‘Words with Friends,’ is getting crushed after it missed on earnings and lowered its guidance.
The company reported an earnings-per-share loss of $0.05 per share Wednesday, lower than analysts’ expectations for a breakeven quarter. Additionally, the company estimated revenues in the first quarter of 2016 will be $160 million to $175 million, lower than the $182 million expected by Wall Street.
In response the stock dropped at much as 11% in after hours trade.
Zynga has dropped over 80% since it peaked at $14.95 a share soon after its IPO in 2012. For much of the past 2 years it has traded under $5 a share.
The company has been in the midst of a transition from desktop-integrated games to a mobile-first strategy, trying to revive revenue and create a sustainable hit.
“While we get that Zynga has been a show me story, in 2016, we have better visibility into our slate than ever before, with 6 new games already in soft launch,” said CEO and Founder Mark Pincus in the earnings release.
Here’s Wednesday’s sell off.
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